Kotak Mutual Fund, a wholly-owned subsidiary of Kotak Mahindra Bank Limited, has most recently announced its launch of a Multi-cap Fund. The NFO(New Fund Offer) is most expected to be opened from September 8 to September 22, 2021. After the restructuring of the multi-cap as a category to be entered in Mutual Funds by SEBI(Securities and Exchange Board of India), Kotak didn’t miss this opportunity of opening it up in mutual funds.
What is a Multi-cap Fund?
A multicap fund is familiarized as a ‘diversified’ equity fund which is utilized in investing in stocks of establishments with various market capitalizations. These are flexible in nature as the investments that have been done under this category vary in proportion. Generally, the investors who are not high-risk-takers find it safer to invest in multi-cap funds with fewer restrictions than the other categories of mutual funds including large-cap, mid-cap, and small-cap funds.
What’s new in the multi-cap category?
Unlike the prior scenario, where there were no limits on the amount invested in the multi-cap fund, SEBI has laid down the limit. It is obligatory in multi-cap funds to invest a minimum of 25% in each of the Large-cap, Mid-cap, and small-cap stocks.
SEBI took into consideration the Mutual Fund Industry’s request and consequently, redefined this multi-cap category as Flexi-cap funds opening a new door for Mutual Fund industries to launch funds.
To know more about Kotak Mutual Funds, visit https://www.kotakmf.com/